Planning for Medicare - Blue Cross Blue Shield of Massachusetts · 2011-12-06 · Planning for...

Planning for Medicare An Educational Resource from Blue Cross Blue Shield of Massachusetts

Blue Cross Blue Shield of Massachusetts is an Independent Licensee of the Blue Cross and Blue Shield Association.

2 Blue Cross Blue Shield of Massachusetts

Your Guide to Medicare

As you approach your 65th birthday, one of the most important things you’ll likely need to do is make some decisions about your health insurance. As you know, Medicare is the primary insurer for most Americans once they turn age 65.

Consider Planning for Medicare a primer on what you need to know about how Medicare works—and what you might need in terms of additional insurance to protect yourself. Planning for Medicare is full of vital information, including: ● Basics on the main parts of Medicare, including

an optional prescription drug benefit● A handy pullout with a timeline and checklist

outlining the steps you need to take and when you need to take them

● Reputable contacts and resources for more information

Take the time to familiarize yourself with this important resource. Save and refer to it throughout your Medicare enrollment process. The sooner you complete your enrollment, the quicker you can get back to enjoying your life’s journey.

Turning 65 means different things to different people. Compared with previous generations, your needs may be a lot different.


Planning for Medicare 3

Medicare is a federal health insurance program for:● People ages 65 and older● People younger than age 65 with certain

disabilities● People of all ages with end-stage renal disease or

permanent kidney failure

Medicare, which has supported these beneficiaries since the mid-1960s, now has three main parts:

Part A—Hospital InsuranceMost people don’t pay a premium for Part A because they or their spouse already paid for it through their payroll taxes while working.

Part B—Medical InsuranceFor this insurance, which covers care you’ll receive from your doctors and other health care providers, most people pay a monthly premium.

Part D—Prescription Drug CoverageMost people pay a monthly premium for this optional coverage.

Medicare Options There are several ways people access Medicare. The primary ones are:● Original Medicare—Original Medicare is

our country’s health insurance program for people who are Medicare-eligible. The program helps with the cost of health care, covering Medicare Parts A and B, but it does not cover all medical expenses or the cost of most long-term care. Many people who choose this option also select a Medicare Supplement Insurance policy, or “Medigap” plan, called this because these plans can help protect you from some of the coverage gaps in Original Medicare’s plan coverage.

● Medicare Advantage Plans—Types of plans include Medicare HMO and Medicare PPO plans. With a Medicare Advantage plan, you receive the equivalent of the Original Medicare coverage through your Medicare HMO or PPO plan—and other benefits as well.

● Medigap Policy (Medicare Supplement Insurance)—A Medigap policy is health insur-ance offered by private insurance companies to fill the gaps in Original Medicare coverage.

What Is Medicare?

Medicare Enrollment:The Basics

When to EnrollYou’re probably not there yet, but you should plan to apply for Medicare Parts A and B (if eligible) during the three months before the month you turn age 65. With no penalty, you can apply during any of the seven months that make up what’s called the initial enrollment period. This includes the three months before your birth month, the month of your birthday, and the three months after your birth month. But if you apply at any time during the three months before your birth month, you’ll be covered by Original Medicare on the day you turn age 65. Otherwise, you’ll have to wait another month or more. Because Medicare has some limitations in coverage, before you turn age 65 is also a great time to line up your other Medicare coverage.

Who’s Eligible?Most people ages 65 and older who are citizens or per manent residents of the U.S. are eligible for Medicare hospital insurance (Part A) without paying a monthly premium, based on their own or their spouse’s employment. In general, you’re eligible if:● You’re age 65 or older, or● You have received disability benefits from Social

Security or the Railroad Retirement Board for at least 24 months, or

● You have end-stage renal disease and meet certain requirements

If you don’t fit into any of these groups, you can still get Medicare Part A hospital insurance by applying for it through Social Security and paying a monthly premium, as long as you are age 65 or older and a citizen or lawfully admitted alien who has lived in the U.S. for at least five years. If you are eligible for Part A, either for free or by paying for it, you can also enroll in Medicare medical insurance (Part B) by applying for it through Social Security and paying a monthly premium.

How to EnrollMedicare Parts A and BTo sign up for Medicare, call Social Security toll-free at 800-772-1213 (TTY: 800-325-0778). You can set up an appointment at your local Social Security office or handle matters on the phone. You’ll need either to mail or bring proof of age, such as a birth certificate. The retirement age for Social Security benefits is increasing; however, you will still be eligible for Medicare upon turning age 65. Due to the change in the Social Security retirement age, you must contact a Social Security administrator to determine when you will be eligible for Social Security benefits. The administrator will also be able to advise you on how to enroll in Medicare and pay the Medicare Part B premium, if eligible.

Medicare Part D Prescription Drug CoverageMedicare’s prescription drug program is called Medicare Part D and is offered through private companies. It covers both brand-name and generic prescription drugs at participating pharmacies in your area. You should consider joining a plan unless you will already have drug coverage that is at least as good as Medicare Part D prescription drug coverage.1

CostFor most people, Medicare Part A hospital insurance is free. Part B medical insurance, which you can decline, requires a monthly premium. Part D plans, unless they are offered as part of a Medicare Advantage plan, also require a monthly premium; the cost varies according to the plan you choose. Medicare Advantage and supplement plans require you to continue to pay your Medicare Part B premium in addition to your plan premium, if applicable. If you cannot afford to pay your Medicare premiums and other medical costs, you may be able to get help. To find out, call Medicare toll-free at 800-633-4227 (TTY: 877-486-2048). Those with limited resources may be able to get extra help paying for the Medicare Part D prescription drug program. To learn more, call Social Security toll-free at 800-772-1213 (TTY: 800-325-0778).

1 These policies have limitations and exclusions.



Overview of Medicare When it comes to health care coverage, you have several options. The key is to explore them thoroughly and make the choice that best fits your lifestyle and health needs.

You Can Get Your Medicare Health Care Coverage in One of Two Ways:

OR

This information is not intended to be comprehensive. For more information, please call Medicare at 800-MEDICARE (800-633-4227) or refer to Medicare & You, available at www.medicare.gov.

Original Medicare Plan

Part A (Hospital Insurance):No premium for most +Part B (Medical Insurance):Optional at a standard monthly premium

+

Medigap Policy (Medicare Supplement Insurance)

This optional policy can be purchased from private insurance companies to fill in gaps in Original Medicare coverage.

+

Part D Drug Coverage

This optional prescription drug coverage can be purchased from private insurance companies. A late penalty may apply if you delay your Part D enrollment.

Medicare Advantage Plans

● Provide Original Part A and B benefits and may include extra benefits

● Can be purchased from private insurance companies

● Your out-of-pocket cost for covered benefits may be lower.

● Network and benefits vary by plan types and insurance companies

● Medicare Advantage Plans include: –HMO –PPO● Most Medicare Advantage plans

include Part D drug coverage.● Your monthly premium = Part B

standard premium + MA plan premium.


While Original Medicare offers extensive coverage, it won’t cover all your health care costs or prescription drugs. To bridge these gaps, you have several options:

Medicare Supplement Insurance policies—These insurance plans, also known as Medigap policies, help you cover extra health care costs, including coinsurance, copayments, and deductibles—“gaps” in Original Medicare coverage. There are two Medicare Supplement Insurance policies available in Massachusetts. Besides filling in some of the coverage gaps, some of these Medicare Supplement Insurance policies provide benefits that Original Medicare does not cover, such as emergency health care while traveling outside the U.S. With these policies, you can go to any doctor or hospital that accepts Medicare. Medicare will first pay its share of your costs, then your Medigap policy will pay its share of your costs. In addition to the monthly Part B premium, you will pay a monthly premium to the private insurance company providing you the policy. Often these plans are good companion plans with a Prescription Drug Plan (PDP).

Medicare Advantage plans—These plans will cover all of your Medicare-covered health care. Usually, there are extra benefits and lower copayments than in the Original Medicare plan. However, you may have to get your care from primary care doctors, specialists, or hospitals in the plan’s network except in an emergency. It may include Part D prescription drug coverage. Medicare HMOs are ideal for people who practice preventive care and work with a primary care physician to coordinate care with specialists and hospitals. A Medicare HMO may offer coverage for services such as routine dental and vision care. Medicare PPOs allow you to choose which doctor or specialist to visit and to go out of the network for services. You may have higher out-of-pocket costs when you receive out-of-network services.

Medicare Part D prescription drug coverage—Medicare Part D helps cover your costs for prescription drugs. To receive this benefit, you must enroll in a private plan either through a Medicare Advantage plan that includes Part D or you can join a stand-alone Medicare PDP. This is an option for people who want drug coverage but still want Original Medicare alone or with a Medicare Supplement Insurance policy.

Group coverage—If your employer offers to continue your group health coverage after you retire, carefully weigh your options. You should compare the costs and benefits of your group health coverage vs. Original Medicare and a Medicare Supplement Insurance policy or a Medicare Advantage plan. If you opt for your employer’s plan, you can sign up later for Medicare Part B. To avoid any financial penalties, you must do so during the eight-month period that starts when your group coverage, or employment through which you received the coverage, ends. Your Medicare Supplement six-month open enrollment period begins at the time you enroll in Medicare Part B. If you have coverage under a program from:● The Department of Defense: Your health

benefits may change or end when you become eligible for Medicare. Contact the Department of Defense or a military health benefits adviser for information before you decide to enroll in Medicare Part B medical insurance.

● The Indian Health Service, the Department of Veterans Affairs, or state medical assistance: Contact staff in those offices to help you decide whether you should have Medicare Part B medical insurance.

Bridging the Gaps in Medicare

Countdown to 65!Here is a handy pullout of specific steps you will need to check off to ensure the smoothest health coverage transition once you turn 65. Your birthday might seem far off, but it’s best to get started now.

FiguringoutyourMedicarehealthcareoptionsislikealltheotherimportantdecisionsyou’vemadeinyourlife,whethertheyinvolvedchoosingwhereyourchildrenshouldgotoschool,buyingahouse,ordecidingwheretoputyourretirementsavings. Themoretimeyoutaketofamiliarizeyourselfwithyouroptions,themoreyou’relikelytochoosethebestplanforyou.Andifyouusethischecklistasaguide,themoreconfidentandcomfortableyou’llfeelthatyou’vemadetherightchoicewhenyour65thbirthdayarrives.

IfyouarealreadygettingSocialSecuritybenefits,youwillautomaticallybeenrolledinMedicarePartsAandBstartingthefirstdayofthemonththatyouturnage65.YouwillreceiveyourMedicarecardaboutthreemonthsbeforeyouturnage65.Thiscardwillshowyouthedateyourcoveragebegins.Ifyoudecideyoudon’twantPartBcoverage,followtheinstructionsonthecard.

Enrolling in Medicare

Ifyouareclosetoage65andhaven’tfiledforSocialSecurity,youmustenroll.Todothis,contacttheSocialSecurityAdministrationat800-772-1213.TTYusersshouldcall800-325-0778.

Enrolling in Medicare Part B Ifyouarenearingage65,there’saseven-monthperiodduringwhichyoucangetMedicarePartB.Thisseven-monthperiodincludesthethreemonthsbeforeyour65thbirthday,themonthofyour65thbirthday,andthethreemonthsafteryour65thbirthday. ThebesttimetosignupforMedicareisduringthethreemonthsbefore your65thbirthday.Remember,enrollmentinMedicarePartsAandBisnotalwaysautomatic.

Medicare Part B Enrollment Timeline

If You Enroll in This Month: Your Coverage Starts:

3 months before your birthday month Your birthday month

2 months before your birthday month Your birthday month

1 month before your birthday month Your birthday month

Your birthday month 1 month after you enroll

1 month after your birthday month 2 months after you enroll

2 months after your birthday month 3 months after you enroll

PLANNING FOR MEDICARE PULLOUT SECTION

PLANNING FOR MEDICARE PULLOUT SECTION 1

Check off each item as you complete the task

Your Medicare Countdown to Age

�8�months�before��your�birthday,��have�you�…

Begun educating yourself about Medicare and Social Security?

Called Social Security to determine your eligibility for both?

Considered your options for coverage to help protect yourself from costs not included in Medicare coverage?

Talked with family and friends, your doctors, and others about these options?

Asked your doctors whether they accept Medicare?

�5�months�before��your�birthday,��have�you�…

Spoken with your employer to see whether group health coverage is an option?

Begun to identify the type of extra Medicare coverage that is right for you?

Begun narrowing your choices of insurers? If you’ve already made your decision on a Medicare supplement insurance plan, you can enroll now.

3�months�before��your�birthday,��have�you�…

Applied for your Medicare benefits through the Social Secu-rity Administration? (This is the first month you are eligible to apply.)

Determined how the plans that you are considering cover you if you plan to travel throughout the United States or abroad?

Determined how these plans would affect your selection of doctors?

Asked about the plans’ Medicare Part D coverage, including:

● Monthly premiums?● Copays/coinsurance?● Coverage for the drugs you currently take? ● Possible conveniences such as mail-order pharmacy services? Asked whether the plans offer

hearing and vision discounts or dental coverage options?

Signed up for Social Security if you’ve decided to take early Social Security benefits? (It usu-ally takes three months after you sign up before you begin receiving benefits.)

? Questions?The Centers for Medicare & Medicaid Services can help. Call 800-MEDICARE (TTY users, call 877-486-2048) or go to www.medicare.gov.

65!

8 5 3

2-3 PLANNING FOR MEDICARE PULLOUT SECTION

�2�months�(or�one�month)�before�your�birthday,�have�you�…

DecidedwhetheryouwantMedicarePartBmedicalinsurance?Ifnot,haveyoureturnedtheformthatMedi-caresentyouindicatingthatyoudeclinePartBcoverage?(MostpeopletakePartB.)

CheckedtoseeifyourdoctorparticipatesinMedicareandinMedicareAdvantageplans,ifappropriate?

Selectedandsignedupforaninsurancepolicythatsupple-mentsMedicareorotherwisecoversyouifyouthinkyouneedmoreprotection?

Checkedwithyourbenefitcoordinatoratyourjobtobesurethatbothyourretirementandhealthinsurancetransitionswillgosmoothly?

During�your�65th�birthday�month,��make�sure�you:

Discuss your situation with your employer. Ifyouarestillcoveredbyyouremployer’shealthcareplanafteryour65thbirthday,youshouldcompareyourpremiumsandothercostswiththatplanvs.thecostsofpayingforMedicarePartBandaMedicareSupplementorMedicareAdvantageinsurancepolicy.Surprisingly,thelattermaybemoreeconomical.Evenifyoucontinuetobecoveredbyyouremployer,youshouldapplyforMedicarePartAtosupplementyouremployer’splan.Youwillreceiveaguide,Medicare & You, fromtheCentersforMedicare&MedicaidServicesthatexplainsyouroptionsandhowtheywork.Inaddition,call800-MEDICAREorTTY: 1-877-486-2048torequestEnrolling in Medicare,orgotowww.medicare.gov,“SearchTools,”andthen“FindaMedicarePublication.”ThisguideexplainsyourrightsifyouwishtoenrollinMedicarePartBlater.

Have received your Medicare card. Makesureyoucheckittoverifyyournameandthecoverageyouwant.Signthecard,makeacopyforyourfiles,andkeepitinasafeplace.

Sign the form that Medicare sent along with the card and return it if you don’t want Part B. You’llgetanothercardindicatingthatyouhaveonlyPartAcoverage.Signit,makeacopyforyourfiles,andkeepitinasafeplace.

Ask your physicians whether they participate in Medicare or your preferred Medicare Advantage plan option. ThismeanstheyacceptMedicareassignmentorMedicare’sallowableratesaspaymentinfull.

Tell your physicians to send your bills to Medicare if you sign up for Original Medicare or to any new Medicare plan you may have.

Make arrangements for your spouse. Thisisparticularlyimportantifheorshewascoveredbyyouremployer’shealthplan.Suchcoverageisstillapossibility.

Consider signing up for a Medicare Supplement or Medicare Advantage insurance policy. Thisiskey.Thesepoliciescanreduceyourout-of-pocketexpensesbypickingupwhereOriginalMedicarecoverageleavesoff.

Your Medicare Countdown to Age 65!PLANNING FOR MEDICARE

PULLOUT SECTION

2 Your 65th Birthday

The Social Security Administration (SSA)For information and publications about signing up for both Social Security benefits and Medicare, talk with an expert at your local SSA office by calling toll-free 800-772-1213 (TTY: 800-325-0778). Recorded information is available 24 hours a day. Service representatives and the TTY number are available from 7 a.m. to 7 p.m. on business days. You can ask about getting a Social Security statement and benefit verification or when you should apply for a Social Security or Medicare card. Or visit them online at www.ssa.gov. Here you will find the answers to many frequently asked questions. The website also offers a retirement planner that you can download.

MedicareYou can find information about Medicare and your other choices. Publications include Medicare & You and Choosing a Medigap Policy: A Guide to Health Insurance for People With Medicare. Call 800-MEDICARE (800-633-4227) or TTY: 877-486-2048 to request them. Or visit the website at www.medicare.gov, where you will find many of these publications online so that you can compare the Medicare Supplement and Medicare Advantage plans, as well as the Medicare Part D Prescription Drug Plans available in your area.

SHINE (Serving Health Information Needs of Elders)You can contact the SHINE program, Massachusetts’ state health insurance program that provides free, one-on-one health insurance information, counseling, and assistance to Medicare beneficiaries of all ages. Call SHINE toll-free at 800-AGE-INFO (800-243-4636), and press 2 (TTY: 800-872-1066). Visit their website at www.medicareoutreach.org. Benefit Coordinators Where You WorkThese coordinators can explain the Medicare process and other retirement issues and discuss whether you should continue with your group coverage.

Your DoctorHe or she may be a good source of information. The insurance coordinator in your doctor’s office may also be able to discuss health care coverage choices and the claims reliability of area insurers.

Researching MedicareAs you reach your final decisions regarding Medicare and Medicare Supplement Insurance policies, you may want to consult:

4 PLANNING FOR MEDICARE PULLOUT SECTION


The right plan for you depends on a number of factors. As you familiarize yourself with your Medicare options, consider the following:● Cost—What will you pay out of pocket, including

premiums? Don’t forget to factor in deductibles, copayments and coinsurance—and how much, if any, of these are covered by a particular policy.

● Benefits—Are extra benefits and services, such as prescription drug coverage, eye exams, or hearing aids, covered? (These may be covered by some plans.)

● Doctor and hospital choice—Can you see the doctor(s) you want to see? Do you need a referral to see a specialist? Can you go to the hospital you want?

● Convenience—Where are the doctors’ offices? What are their hours? Is there paperwork? Are they accepting new patients? Do you spend part of every year in another state? If so, how would you be covered?

● Prescription drugs—Are your prescription medications on the plan’s list (formulary) of covered drugs?

● Pharmacy choice—Can you use the pharmacies you want? Are the pharmacies convenient?

● Quality of care—How is the quality of the plans in your area? Information about quality is available at www.medicare.gov.

Be a Smart Consumer In reviewing any policy that supplements or replaces Medicare, make sure you check the following:

Avoid DuplicationIf you prefer to remain in Original Medicare and want to fill in the coverage gaps, you need only one Medicare Supplement Insurance policy to work with your Medicare coverage. Federal law actually prohibits any company from selling you a second Medicare Supplement Insurance policy unless you state, in writing, that you are going to cancel the first policy. A single comprehensive policy is more likely to give you the coverage you need rather than several policies with overlapping or duplicate coverage. Duplicate coverage is costly and unnecessary. If you have some other kind of private insurance besides Original Medicare and a Medicare supplement, check with your insurance plan. Ask how your private plan fits with Medicare insurance—and if insured through your employer or union, check to see how any changes you make might affect other members of your family who are also covered under the private insurance. Do not cancel any private health insurance you have until your Medicare Supplement coverage becomes effective.

Take Advantage of Your Free Review PeriodYou legally have at least 30 days to review a Medi-care Supplement Insurance policy. If you decide you don’t want the coverage, you can get a full refund of any premiums you’ve paid during this “free-look” period.

How to Choose the Right Coverage for YouThere are a number of different ways you can receive Medicare and coverage that works together with Medicare to give you even more protection


The good news is, Original Medicare covers you anywhere in the U.S., even if you’re away from home or in another state for months at a time. If you want to travel outside the country, however, be aware that Original Medicare applies only within the U.S. and its territories, such as Puerto Rico and the U.S. Virgin Islands. With only a few exceptions, Medicare will not cover you if you’re outside this country.

But you can help protect yourself with a Medicare Supplement Insurance plan or Medicare Advantage HMO or PPO plan that provides coverage for emergency care whether in the U.S. or a foreign country. Typically, Medicare Advantage PPO plans pay for plan-covered services anywhere in the U.S. at out-of-network cost-share levels.

Medicare on the GoAs you approach age 65, you may have more time to travel. If you do, you’ll want health insurance that travels as well as you do, which means you’ll probably want more than just Original Medicare coverage.


Q. What are the benefits of signing up for Medicare before or around my 65th birthday?A. If you’re eligible, you will be covered automatically by Medicare Part A hospital insurance when you turn age 65. But if you wait to sign up for the Part B medical insurance after your initial seven-month enrollment period ends, you’ll have to wait until the general enrollment period from January 1 through March 31 each year. However, your Medicare Part B coverage won’t begin until July 1 of the year you apply. And for each year you skip Part B coverage, your monthly premium will increase another 10 percent. The only exception: If you’re covered by a group plan after you turn age 65, you can delay enrolling in Part B without paying the 10-percent-per-year premium surcharge.

Q. What’s the most important question to ask my doctors?

A.Before you receive treatment, always ask, “Do you accept Medicare assignment?” If your doctor says yes, that means he or she accepts Medicare’s allowable fees as payment in full. If he or she says no, that means your doctor can choose to charge you more than Medicare allows for any or all services up to the limited charge that Medicare allows. That’s called balance billing. If your doctor does not participate in Medicare, you may want to switch doctors. Or you may consider a Medicare Supplement plan, which will cover you for some or all balance billing.

You can also consider a Medicare Advantage HMO or PPO plan, which will cover you if you use doctors who participate in the plan’s provider network (PPOs cover out-of-network care, but you will generally pay more for those services) and therefore don’t practice balance billing.

Q. How can I maximize my Medicare benefits and minimize my out-of-pocket expenses?A.There are several basics:● Always carry your Medicare, Medicare

Supplement, or Medicare Advantage plan ID cards and present them whenever you visit a doctor, hospital, or other health care provider.*

● Remember to carry your Medicare Part D Prescription Drug Plan ID card and present it at the pharmacy or wherever you obtain prescription drugs.*

● If you have a Medicare Supplement Insurance or Medicare Advantage plan that involves a network of health care providers, such as doctors and/or hospitals, always try to use those providers when you need care.

● If you are uncertain whether Medicare covers a service, call Medicare first.

● If you are unsure about anything, call Medicare. If it concerns your Medicare Supplement, Medicare Advantage, or Prescription Drug Plan, call your plan provider.

● Keep abreast of changes by taking the time to read information Medicare and your private insurer send you.

● Stay fit and active, and maintain a strong social life.

* You will need to have your Medicare card to enroll in a Medicare Supplement, Medicare Advantage, or Medicare Part D plan.

Medicare Q and A:Some Things to Consider


If that describes you, you should know that group health plans of employers who have 20 or more employees must offer workers who are age 65 or older the same health benefits they provide for younger employees. Regardless of your age, if your spouse is age 65 or older, such plans must also offer her or him the same health benefits they give younger spouses. If you accept your employer’s coverage, that plan will pay first on your hospital and medical bills, and Medicare may pay some of the remaining expenses. If you decline the employer’s coverage, Medicare will be your primary health insurer. If your employer has fewer than 20 employees, he or she may suggest or prefer that you sign up for Medicare as your primary health insurer once you turn age 65. Your employer may then provide additional coverage for you. The best advice: Talk with your employer or union ahead of time to learn your options.

What About Your Spouse?Ask your employer about health care options that may be available for your spouse after you retire or turn age 65.

What About Social Security?Medicare isn’t the only federal benefit you must consider. Obviously, there’s Social Security as well. Just because you become eligible for Medicare when you turn age 65, however, doesn’t mean you have to start taking Social Security benefits then. Because you can begin collecting Social Security retirement benefits at age 62, you may already be

receiving Social Security. But if you haven’t yet turned age 65, you won’t be eligible to collect full Social Security benefits as soon as you are eligible for Medicare. If you were born in 1941, the full retirement age for Social Security benefits is age 65 and 8 months. If you were born in 1942, the full retirement age creeps up to age 65 and 10 months. For those born between 1943 and 1954, the full retirement age is 66. The choice is completely up to you. If you elect to take Social Security before your full retirement age, your monthly Social Security payments will be slightly reduced. But as a general rule, early retirement will give you about the same total Social Security benefits as full retirement over your lifetime. You just get them in smaller amounts to take into account the longer period you will receive them.

Should You Keep Working?If you work after you reach your full Social Security retirement age, you can keep all your benefits—no matter how much you earn. If you are younger than full retirement age, there is a limit to how much you can earn and still receive your full Social Security benefits. Contact the Social Security Administration for more information. But working may be more important to you—from either a financial and/or satisfaction standpoint—than benefit deductions required by Social Security. Again, the choice is all yours.

If You Don’t Retire:Planning to Continue Working?Many people are planning to work right through age 65.


One More Factor to ConsiderThe amount of your Social Security benefit is based on the average of your 35 highest years of earnings. Every year Social Security reviews the records of all Social Security recipients who work. If your latest year of earnings turns out to be one of your highest years, your benefit will be automatically increased accordingly. The calculations are usually completed by October of the following year.

Year of Birth Full Retirement Age

1941 65 and 8 months


1943-1954 66






1960 and later 67

Age to Receive Full Social Security Benefits

Note: People born on January 1 of any year should refer to the previous year.

If you are already getting Social Security benefits When you turn 65, your Medicare starts automatically. If you are not getting Social Security, you should sign up for Medicare before your 65th birthday, even if you are not ready to retire.

Helpful Contact InformationIf you have any questions while considering your decisions about Medicare and related issues, contact the following reputable sources:

Centers for Medicare & Medicaid Services800-MEDICARE (800-633-4227)TTY: 877-486-2048www.medicare.gov

Serving Health Information Needs of Elders (SHINE)800-AGE-INFO (800-243-4636)www.medicareoutreach.org

Social Security Administration 800-772-1213TTY: 800-325-0778www.ssa.gov

109687 37-1885-11

® Registered Marks of the Blue Cross and Blue Shield Association. © 2011 Blue Cross and Blue Shield of Massachusetts, Inc. and Blue Cross and Blue Shield of Massachusetts HMO Blue, Inc.

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